Must be someone with enough shares to manipulate this big time, and with no news:
Manipulating stock prices legally is actually fairly easy.
The problem for individual stock investors is they don't have ready access to these techniques and, consequently, often end up on the losing end of these schemes.
Here's what happens, although there are many ways to accomplish the same result:
A big institutional investor (hedge funds, mutual funds, insurance companies, and so on) picks a stock that it owns and begins selling.
As it dumps the stock on to the market, the price begins to fall. Other investors unload the stock and the price continues to fall.
At some point, the institutional investor decides it is time to jump back in and it begins an aggressive buying program. Soon, other investors notice the price rising and they buy also pushing the price up higher.
Once the price is sufficiently high, the cycle can begin again.
What has happened is the institutional investor through its purchasing power can drive prices down and then buy back into the stock at a low price.
It rides that price up as others join the rally and pockets a hefty profit.
This is called the slingshot effect and was described in a much-quoted article back in 2009 by Jason Schwarz. He was referring specifically to Apple stock.
I always suspected something like this. I'm going to read the article--thanks for posting it. Often my strategy has been to try to jump on the hedge fund boat and take the ride with them. Though I've never shorted a stock so I guess I try to ride it back up. That's why for this one - TASER - I guess I've got to have balls of steel and hang in there. You sling back up any day now, right?!?
First, I'll apologize. I bought TASER three months ago and then it started its steady decline. This happens for every stock I buy...even Apple when I was buying it at $650 and it went to $385. I like to buy stocks and then have them take 2 years to get back to even.
Second, what in the HELL is going on? There is no news and this thing drops multiple percentage points a week? I truly don't get it. The average price target is something like 18.50, but all analysts have a hold or say it's fair market value. None of it adds up. I'm even desperate enough to come to the friction' yahoo message board to figure it out. Anybody have any actual thoughts?